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TMI Blog2024 (7) TMI 653X X X X Extracts X X X X X X X X Extracts X X X X ..... lied, mode supply, mode of sale consideration received, etc. have not been furnished during the course of the Assessment proceedings amounting to Rs. 1,73,50,000/- from different parties therefore, for this limited purpose of examining the same, the matter should go back to the file of the AO. Appeal filed by the assessee is partly allowed for the statistical purposes. - Shri Chandra Poojari, Accountant Member And Shri Keshav Dubey, Judicial Member For the Assessee : Shri V. Srinivasan, Advocate For the Revenue : Shri Guru Kumar S., Addl. CIT-DR ORDER PER: KESHAV DUBEY, J.M. This appeal at the instance of the assessee is directed against DIN order No. ITBA/NFAC/S/250/2023-24/1062548837(1) dated 13.03.2024 passed by the National Faceless Appeal Centre, Delhi (CIT(A)) under Section 250 of the Income Tax Act, 1961 (the Act) for Assessment Year (AY) 2017-18. 2. The assessee has raised the following grounds of appeal: - 1. The orders of the authorities below in so far as they are against the appellant are opposed to law, equity, weight of evidence, probabilities, facts and circumstances of the case. 2. The learned Commissioner of Income tax [Appeals] / National Faceless Appeal Centre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 87,39,282/-. The assessee company claimed the sale of plants and seeds are in the nature of agricultural income and it is exempted in terms of Section 10(1) read with explanation (3) to Section 2(1A) of the Act. Thereafter the case of the Assessee was selected for scrutiny. Statutory notices under Section 143(2) as well as under Section 142(1) of the Act were issued calling for details/information. The assessee furnished the details of ownership of land, ledger copy of sale Register, water charges, power fuel, repair and maintenance as well as bank statements from 01.04.2015 to 31.03.2017. Thereafter the Assessing Officer (AO) completed the assessment under Section 143(3) of the Act on 29.12.2019 on a total assessed income of Rs. 87,39,282/- as against the Nil income returned by the assessee as the full details like complete address, date of order, date of supply, information of order of sale of plants/tissue, when it is supplied, mode of supply, mode of sale consideration received are not been furnished by the assessee. Further, the AO observed in his order that the company is in the habit of not providing any information sought for from the department. Aggrieved, by the aforesa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act dated 03/12/2019 Copy of the appellant's response filed on 28/12/2019 before the ITO, Ward-1[1], Mysore alongwith e-filing Ack. 1.3 Annexure-3 - Copy of the decision of the Hon'ble ITAT, B Bench Bangalore in the case of case of the appellant for the assessment year 2009-10 in ITA No.879/Bang/2015 dated 18/12/2015 1.4 Annexure-4: Copy of the order of assessment passed u/s. 143[3] rws 254 dated 30/12/2016 for the Assessment year 2009-10 1.5 Annexure-5: Copy of the order of assessment passed u/s. 143 [3] of the Act dated 13/12/2018 for the assessment year 2016-17 6. Before us the ld. A.R. of the Assessee submitted that the ld. CIT(A) failed to appreciate the fact that the income derived by the assessee is from agricultural operations, which is exempt under Section 10(1) of the Act read with explanation 3 to Section 2(1A) of the Act. Further, the learned A.R. of the assessee argued that the assessee had filed written submissions along with documentary evidences before the authorities below and therefore the learned CIT(A) was not justified in confirming the assessment of a sum of Rs. 87,39,282/- as income from other sources. Further, the learned A.R. vehemently submitted th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9 shall be charged for any assessment year at any rate or rates, income-tax at that rate or those rates shall be charged for that year in accordance with, and *subject to the provisions (including provisions for the levy of additional income-tax) of, this Act in respect of the total income of the previous year of every person : Provided that where by virtue of any provision of this Act income-tax is to be charged in respect of the income of a period other than the previous year, income-tax shall be charged accordingly. 12. A reading of the above clearly show that the charge of tax is on total income. Agricultural income is exempt u/s. 10(L) of the Act which falls in Chapter II of the Act. Heading of Chapter III is Incomes which do not form part of total income . Thus the items of income specified in Section 10(1) of the Act or Chapter III of the Act would not be a part of total income. There cannot be a charge of tax u/s. 4(1) of the Act on anything other than total income. As per the assessee, nature of its income was agricultural. Irrespective of the fact whether assessee had preferred a claim in this regard or not, the charge of tax under the Act can only be on total income of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n in a nursery shall be deemed to be agricultural Income and the same cannot be taxed as Income from Other Source. However as the AO as well as ld.CIT(A) observed that on perusal of Sales register, the full details like complete address and date of order, date of supply, nature of order of sale of plant/tissue, when it is supplied, mode supply, mode of sale consideration received, etc. have not been furnished during the course of the Assessment proceedings amounting to Rs. 1,73,50,000/- from different parties therefore, for this limited purpose of examining the same, the matter should go back to the file of the AO. We, therefore, set aside the order the CIT(A) and remand this issue to the file of the AO for the limited purposes of the examination of above details not produced during the course of assessment proceedings. Needless to say the AO shall provide reasonable opportunity of hearing to the assessee. The assessee is also directed to cooperate furnish the necessary details in support of its claim not to seek any other adjournment without just cause. It is ordered accordingly. 9. In the result, the appeal filed by the assessee is partly allowed for the statistical purposes. Ord ..... X X X X Extracts X X X X X X X X Extracts X X X X
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